Setting up an employee's 401(k) information

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Important reminder!

Licenses for Payroll CS, Trial Balance CS, and Write-Up CS (but not Engagement CS) permanently expired on March 1, 2017.

For details, see CSA license expiration 2017 – frequently asked questions.

Some processes documented in the Help & How-To Center are no longer applicable, due to the discontinuation of these CSA modules.

Before beginning this procedure, you need to set up a global 401(k) deduction item in the Setup > System Configuration > Deduction Items dialog. Be sure to specify the calculation type that you want to use for this item.

Or you may use one of the global deduction items already provided with your Payroll CS software - 401(k) % of Gross or 401(k) Fixed Amount.

  1. Choose Setup > Employees.
  2. In the Employees window, click the Tax Withholdings & Deductions tab and then select the 401(k) item in the items grid.
  3. Choose Edit > Item Properties (or click the /_images/acct_pr/csa/details.gif button next to the 401(k) item in the Deductions grid).
  4. In the Deduction Info tab of the Deduction Item Properties dialog, enter the 401(k) amount or percentage for this employee. If this is to be a sequential deduction, mark the Sequential deduction checkbox.
  5. If there are limits for this deduction, click the Deduction Limits tab and enter the required information.

    Note: To set the 401(k) limit globally rather than at the employee level, follow the Setting up limits for retirement plans and Catch-up provisions procedure.

  6. If there is a company matching amount or percentage for this deduction:
    • Click the Company Match tab to specify the calculation method, the amount or percentage, and the liability and expense accounts.
    • Click the Match Limits tab and specify any limits that are associated with the company match part of the deduction.
  7. Click OK to save your changes and close the Deduction Item Properties dialog.
  8. In the Employees window, click the Enter button to save the new information in the employee's record.

Related topics

Setting up limits for retirement plans and Catch-up provisions

Federal Tax Information > Retirement Plan Limits dialog

Company match employee setup example

Sequential company match deduction example

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